Digital Media Professionals Inc. · TSE:3652

Digital Media Professionals — H1 FY2020 Earnings Presentation

27 slides from Digital Media Professionals's earnings presentation, Nov 12, 2019

  1. Slide 1: Fiscal Year Ending March 31, 2020 First Half Results Briefing

    Fiscal Year Ending March 31, 2020 First Half Results Briefing Digital Media Professionals Inc. November 12, 2019 The views and forecasts that appear in these materials represent determinations made by the Company at the time the materials were created. The accuracy of the information therein is not

  2. Slide 2: Explanation of Results, Fiscal 2020 First Half

    1 Explanation of Results, Fiscal Year Ending March 31, 2020 First Half 2 This Fiscal Year's Topics and Business Progress 3 Fiscal Year Ending March 31, 2020, Full-Year Business Forecast and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 2

  3. Slide 3: Explanation of Results, Fiscal 2020 First Half

    1 Explanation of Results, Fiscal Year Ending March 31, 2020 First Half 2 This Fiscal Year's Topics and Business Progress 3 Fiscal Year Ending March 31, 2020, Full-Year Business Forecast and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 3

  4. Slide 4: Movements in the AI Industry

    Movements in the AI Industry ⚫ Explosive increase in AI processing requirements such as image recognition and natural language understanding ⚫ Performance improvements reliant on evolution of semiconductor processes reaching their limits (demise of Moore's Law) → Acceleration of development of syste

  5. Slide 5: Results Highlights: P/L

    Fiscal Year Ending March 31, 2020 First Half Results Highlights: P/L Difference 1H FY 03/2020 1H FY 03/2020 1H FY 03/2020 between initial 1H FY 03/2019 (Initial estimate on (Revised estimate on (Actual) forecast and (Actual) YoY change (Unit: million yen) May 10) Oct. 25) actual results Net sales 40

  6. Slide 6: Results Highlights: Net Sales by Business

    Fiscal Year Ending March 31, 2020 First Half Results Highlights: Net Sales by Business IP core license business Sales ¥82 million YoY change -¥59 million ⚫ Decrease in running royalties centered on game console customers ⚫ Although multiple new license contracts of ZIA edge AI IP "DV series" were re

  7. Slide 7: Results Highlights: B/S

    Fiscal Year Ending March 31, 2020 First Half Results Highlights: B/S Increased equity through business and capital tie-up with Yamaha Motor End of September Increase-decrease (Unit: million yen) End of March 2019 2019 amount Current assets 2,063 2,563 +500 Non-current assets 320 899 +579 Total asset

  8. Slide 8: This Fiscal Year's Topics and Business Progress

    1 Explanation of Results, Fiscal Year Ending March 31, 2020 First Half 2 This Fiscal Year's Topics and Business Progress 3 Fiscal Year Ending March 31, 2020, Full-Year Business Forecast and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 8

  9. Slide 9: Areas of Application of Edge AI for Resolving Social Issues

    Areas of Application of Edge AI for Resolving Social Issues Agriculture Unmanned farming equipment Manufacturing Product quality testing Improvement of productivity associated Labor shortage in Japan and with the labor shortage is an issue increased global food demand ● Future efforts most emphasize

  10. Slide 10: Value Proposition and Monetization by DMP

    Value Proposition and Monetization by DMP ⚫ Provision of domain-specific solutions through a development system integrating algorithms, software and hardware ⚫ Monetization through optimization services and hardware acceleration for systems developed by customers AI Algorithm development Optimizatio

  11. Slide 11: Progress of This Fiscal Year's Priority Topics and Measures in the Time Ahead

    Progress of this Fiscal Year's Priority Topics and Measures in the Time Ahead 1 Expanding RS1 Business 2 Expanding Portfolio and Sales of AI Products 3 Strengthening Collaboration with Customers and Cultivating Specific Fields Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 11

  12. Slide 12: Expanding RS1 Business

    1 Expanding RS1 Business RS1, Next-Generation Graphics Processor Now Producing in Volume and Shipping ⚫ Adopted by ZEEG, a joint venture ⚫ Support for android OS, with shipments for between Sammy and Universal arcade machines scheduled to commence Entertainment, with shipments to this fiscal year pa

  13. Slide 13: Expanding Portfolio and Sales of AI Products

    2 Expanding Portfolio and Sales of AI Products Strengthening of ZIA AI processor IP, module, and software product IP Core Products Module Products Software Products and Services Compact and high Flexible and low performance AI power consumption AI • Self-developed and advanced image inference proces

  14. Slide 14: Topics - AI Products

    Topics - AI Products ZIA Classifier adopted in the Hiyari-Hatto Start of sale of "ZIA™ Plate" (near-miss) analysis utilizing Denso Ten's number plate recognition software drive recorder (Announced on October 8) (Announced on July 30) ⚫ Adopted in the image analysis service for the ⚫ Utilizing AI and

  15. Slide 15: ZIA Classifier

    ZIA Classifier Powerful support for development of the latest AI systems optimized for customer domains Driver Monitoring Outside-Car Surveillance Automatic / autonomous Smart mirrors System driving systems for low Safe driving support Medical diagnostic System speed vehicles imaging Analysis of nea

  16. Slide 16: Topics - Strengthening of Initiatives Aimed at AI Growth Domains

    Topics - Strengthening of Initiatives Aimed at AI Growth Domains Full implementation of professional services aimed at development of safe driving support systems (announced on November 8) Systemizing the necessary functions into "ZIA™ SAFE" for realizing driver monitoring, Hiyari-Hatto (near-miss)

  17. Slide 17: Topics - AI Ecosystem

    Topics - AI Ecosystem Technical partnership with Computermind Corp. in an integrated environment spanning from creation of AI aimed at product visual inspections to implementation of edge AI (Announced on October 1) ⚫ Technical partnership for jointly creating AI and deep learning solutions supporti

  18. Slide 18: Strengthening Collaboration with Customers and Cultivating Specific Fields

    Strengthening Collaboration with Customers 3 and Cultivating Specific Fields ⚫ Business and capital tie-up with Yamaha Motor Currently performing joint development in business alliance areas such as development of automatic / autonomous driving systems in low speed areas, and development of labor-sa

  19. Slide 19: Adoption in NEDO Projects

    Adoption in NEDO Projects Improvement of technological capability through NEDO projects, application to own business and realization of social contributions Adopted in "Project for Accelerating Innovative Adopted in "Survey of issues for finding ideas regarding Technology Development for AI Chip and

  20. Slide 20: Progress of Business and Capital Tie-Up with Yamaha Motor

    Progress of Business and Capital Tie-UP with Yamaha Motor Collaborating in the final commercialization process from developing algorithms by applying AI technology through to mounting on products Development of systems optimized for each product domain of Yamaha Motor by using DMP's AI algorithms, s

  21. Slide 21: Full-Year Business Forecast and Blueprint for Future Growth

    1 Explanation of Results, Fiscal Year Ending March 31, 2020 First Half 2 This Fiscal Year's Topics and Business Progress 3 Fiscal Year Ending March 31, 2020, Full-Year Business Forecast and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 21

  22. Slide 22: Full-Year Business Forecast

    Fiscal Year Ending March 31, 2020 Full-Year Business Forecast The full-year business forecast remains the same as the initial forecast announced on May 10 YoY change FY 03/2019 FY 03/2020 (Unit: million yen) Increase-decrease Increase-decrease (Actual) (Forecast) amount rate (%) Net sales 1,086 1,30

  23. Slide 23: Blueprint for Future Growth

    Blueprint for Future Growth Evolve into the world's leading "AI Computing Company" Integrated development of AI algorithms, software and hardware Expansion into the growing IoT/AI field Development of ZIA platform • Processor IP • Software AI • Modules • Strengthening of ecosystem with partners • Ov

  24. Slide 24: Inquiries

    <Inquiries> Digital Media Professionals Inc. Corporate Planning Department Tel. +81-3-6454-0450 URL: https://www.dmprof.com/en/ir/ Forward-looking statements contained within this document are based on currently available information and involve risks and uncertainties, including macroeconomic condi

  25. Slide 25: Appendix

    Appendix Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 25

  26. Slide 26: Business description

    Business description Business Description Major Customers IP Core*1 License Development and license offer of hardware IP (logic design data etc.) and software IP (mainly hardware Business control drivers and supporting tools for contents creation) necessary for drawing detailed images and artificial

  27. Slide 27: Major Activities (Fiscal 2020)

    Major Activities (Fiscal Year Ending March 31, 2020) Each item is linked to PR/IR news (in Japanese or English) of DMP’s website. Date of Details Announcement/Event April 3 - April 5, 2019 Partners exhibited ZIATM C3 KITs at AI (Artificial Intelligence) EXPO April 10, 2019 Release of ZIA™ C3 KIT Ver

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